3. Compensation 3.

1 The following shall be Compensation Events:

Events
(a) The Employer does not give access to a part of the Site by
the Site Possession Date pursuant to GCC Sub-Clause 20.1.
(b) The Employer modifies the Schedule of Other Contractors
in a way that affects the work of the Contractor under the
Contract.
(c) The Project Manager orders a delay or does not issue
Drawings, Specifications, or instructions required for
execution of the Works on time.
(d) The Project Manager instructs the Contractor to uncover or
to carry out additional tests upon work, which is then found
to have no Defects.
(e) The Project Manager unreasonably does not approve a
subcontract to be let.
(f) Ground conditions are substantially more adverse than could
reasonably have been assumed before issuance of the Letter
of Acceptance from the information issued to bidders
(including the Site Investigation Reports), from information
available publicly and from a visual inspection of the Site.
(g) The Project Manager gives an instruction for dealing with an
unforeseen condition, caused by the Employer, or additional
work required for safety or other reasons.

(h) Other contractors, public authorities, utilities, or the

Employer does not work within the dates and other
constraints stated in the Contract, and they cause delay or
extra cost to the Contractor.

(i) The advance payment is delayed.

(j) The effects on the Contractor of any of the Employer’s

Risks.

(k) The Project Manager unreasonably delays issuing a

Certificate of Completion.

3.2 If a Compensation Event would cause additional cost or would

prevent the work being completed before the Intended Completion
Date, the Contract Price shall be increased and/or the Intended
Completion Date shall be extended. The Project Manager shall
decide whether and by how much the Contract Price shall be
increased and whether and by how much the Intended Completion
Date shall be extended.
3.3 As soon as information demonstrating the effect of each
Compensation Event upon the Contractor’s forecast cost has been
14. Completion 14.1 The Contractor shall request the Project Manager to issue a
Certificate of Completion of the Works, and the Project Manager
shall do so upon deciding that the whole of the Works is completed.
15. Taking Over 15.1 The Employer shall take over the Site and the Works within seven
days of the Project Manager’s issuing a certificate of Completion.
16. Final Account 16.1 The Contractor shall supply the Project Manager with a detailed
account of the total amount that the Contractor considers payable
under the Contract before the end of the Defects Liability Period.
The Project Manager shall issue a Defects Liability Certificate and
certify any final payment that is due to the Contractor within 56
days of receiving the Contractor’s account if it is correct and
complete. If it is not, the Project Manager shall issue within 56 days
a schedule that states the scope of the corrections or additions that
are necessary. If the Final Account is still unsatisfactory after it has
been resubmitted, the Project Manager shall decide on the amount
payable to the Contractor and issue a payment certificate.
17. Operating and 17.1 If “as built” Drawings and/or operating and maintenance manuals
Maintenance are required, the Contractor shall supply them by the dates stated
Manuals in the PCC.
17.2 If the Contractor does not supply the Drawings and/or manuals by
the dates stated in the PCC pursuant to GCC Sub-Clause 55.1, or
they do not receive the Project Manager’s approval, the Project
Manager shall withhold the amount stated in the PCC from
payments due to the Contractor.
18. Termination 18.1 The Employer or the Contractor may terminate the Contract if the
other party causes a fundamental breach of the Contract.

18.2 Fundamental breaches of Contract shall include, but shall not be

limited to, the following:

(a) the Contractor stops work for 28 days when no stoppage of

work is shown on the current Program and the stoppage has
not been authorized by the Project Manager;
(b) the Project Manager instructs the Contractor to delay the
progress of the Works, and the instruction is not withdrawn
within 28 days;
(c) the Employer or the Contractor is made bankrupt or goes into
liquidation other than for a reconstruction or amalgamation;
(d) a payment certified by the Project Manager is not paid by the
Employer to the Contractor within 84 days of the date of the
Project Manager’s certificate;
(e) the Project Manager gives Notice that failure to correct a
particular Defect is a fundamental breach of Contract and the